Ever since Palantir Technologies Inc. (PLTR:NYE) offered its first IOP in 2020, PLTR stock forecast has seen its highs and lows in the stock market. It has made news once again with analysts indicating a potential growth in the company’s software business in the second quarter.
Palantir Technologies is all set to announce its Q2 financial results on August 7th, 2023. The announcement has led to a prediction that the expensive valuation of the PLTR stock may hinder its growth performance after the second quarter.
PLTR has shown tremendous growth over the years. It has a current market CAP of USD 40.91 Billion. With the rapid development of Artificial intelligence (AI), the CEO of Palantir, Alex Karp ensured any potential investments in Artificial Intelligence during the Q1 conference call, thus indicating a beneficial rise for the company in the upcoming quarter.
PLTR Stock Forecast Evaluation:
The PLTR stock has shown a positive cash flow in the recently passed four quarters, however, it is deemed to be overpriced in terms of cash flow basis than the rest of its sectors. Although its high market capitalization ensures its stability in the market, the high volatility makes it an equally risky investment.
The company has been providing dividend returns way below the median of its peers for the past five years. This is owed to the low earnings growth of the company in the said timeline. It has a sector dividend return of 0.72 percent whereas the capital gain goes as high as 183.49 percent year-to-date, which is the same as the total return value.
PLTR Stock Forecast in Q2:
Recently, the analyst Wedbush Securities initiated the coverage of the PLTR stock forecast, rating it as ‘outperforming’ with the price of USD 25. In the previous quarter of the year, the company suffered a loss of $0.01 per share.
In Q2, the Wall Street analysts suggest an increase in PLTR to post earnings of $0.05. The analysts expect Palantir to post revenue of $533.38 Million in Q2 as opposed to $473 Million in the last quarter. These PLTR stock forecast readings predict higher sales and thus an uprising success of the company in every coming quarter.
What is the PLTR Stock Forecast by Analysts?
About the PLTR Stock, the Monness analyst Brian White believes that Artificial Intelligence (AI), digital transformation, the geopolitical landscape, and Big Data could prove to be revolutionary in terms of benefit for the company.
However, the analysts also debate the apparently rich valuation as opposed to its bumpy ride on revenue recognition. In their PLTR stock forecast, the Wall Street analysts have shared their stance of debunking the idea of PLTR stock investments ahead of Q2 earnings.
The current price of PLTR stock is USD 18.20 whereas, the average analyst target indicates a drop by 35.22% downside potential and reduces it to USD 11.79 in the next 12 months.
The average analyst rating recommends “Hold” as the Stock Target Advisor’s analysis considers this slightly bearish.
The last quarter had an earnings-related move of 23.39% which has recently dropped to 15.49% in the recent quarter, making it a new low. However, the average is -2.03% which is greater than in the last eight quarters of the previous years.
The Takeaway:
Palantir Technologies Inc. is expected to outperform itself amidst the rapid development of AI in the recent upcoming times. With the Q2 financial results yet to be revealed, investors are eager to find out whether the PLTR stock forecast is bullish or bearish in monetary terms.
